x min read

Carolco Pictures Inc (OTCMKTS:CRCO) Making A Comeback

Carolco Pictures Inc (OTCMKTS:CRCO) Making A Comeback
Written by
Alex Carlson
Published on
February 4, 2016
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook

Carolco Pictures Inc (OTCMKTS:CRCO) is a film company that many movie goers are quite familiar with. The company is best known for producing Terminator 2: Judgment Day, Basic Instinct, Total Recall, and the first three films of the Rambo series. However, a string of box office bombs like Cutthroat Island and Showgirls sunk the famed studio. In addition, management was known for lavish spending and making deals with Hollywood actors that made no financial sense. In order to get Arnold Schwarzenegger to star in Terminator 2, Carolco paid him $14 million and gave him a $17 million plane on top. As a result, Carolco declared bankruptcy in 1995.Now the company is back. The company was originally called Brick Top Productions until original Carolco founder Mario Kassar came along and put up the Carolco name. But now Kassar is out and new CEO Tarek Kirschen is in as well as new board member Leonard Lauren, billionaire Ralph Lauren's brother.On January 1, 2016, Sam Lupowitz and other shareholders, collectively representing Carolco Pictures, Inc.’s controlling shareholders, (jointly, the “Seller”), entered into and closed separate and distinct Securities Purchase Agreements (the “Agreements”) with Tarek Kirschen whereby Tarek Kirschen (individually) purchased, in the aggregate, 5,000,000 shares of the Company’s Series A Preferred Shares and a total of 30,000,000 common shares of the Company’s common stock (the “Shares”). Each share of the Series A Preferred Stock has one thousand votes on all matters presented to the holders of Common Stock, resulting in Tarek Kirschen holding a majority of the issued and outstanding voting capital shares of the Company.

Get The Inside Scoop On CRCO By Signing Up To Insider Financial Today!

Tarek is a businessman and heads up the holding company GLOZAL GROUP. GLOZAL is focused on re-developing residential and commercial space for highest and best use. Its portfolio includes residential rental properties, commercial office buildings, and vacant land for future development. The company also owns a social real estate network with members in over 90 countries at glozal.net.Last month, Carolco brought on Jacqueline Journey to be the new COO. She has a lot of experience in Hollywood. She is an award-winning filmmaker and television producer who has created thousands of hours of original programming that have been seen in all corners of the globe including Europe, Africa, Asia and The Pacific Rim, The Middle East, South America, and the United States. Several of these were award-winning live concerts, documentaries, series, and high profile interviews featuring Oscar winners, Grammy winners, legends, and celebrities including Matthew McConaughey, Dennis Quaid, Willie Nelson, Billy Bob Thornton, Juliette Lewis and Taylor Swift. Ms. Journey has worked with Hit Video USA (bought out by Viacom International ), TMZ, The Music Zone (a partnership with TCI/Liberty) and most recently M*E Television (a partnership with Time Warner) where she was recruited as Vice President and Executive Producer.Leonard Lauren joining the board is quite a coup for the company. His brother Ralph is worth over $6 billion. As a Vice President, Leonard was instrumental in helping build Ralph Lauren Corp. It's pretty obvious Leonard is being brought on for his financing contacts in helping develop a new line of films at Carolco. After all, Leonard isn't going to go from a $10 billion company to a penny stock if he didn't see tremendous upside.

We Have A Monster Pick Coming Soon!

Sign Up Today!

The biggest worry for investors in Carolco is dilution. There are $335k worth of notes that are convertible into shares at discounts ranging from 39% to 50%. CRCO also has raised the number of authorized shares to 5 billion from 350 million.

However, the good news is that there's a business guy in charge of Carolco. Mario Kassar is out while Leonard Lauren is in. Paramount Pictures is out on the Terminator sequel and Carolco might be in. It's too early to tell, but many are speculating we could see Carolco produce the next Terminator blockbuster, which would be huge for this OTC stock. We'll have more on CRCO as soon as the situation develops. Sign up to Insider Financial today to stay on top of the latest developments from CRCO!

Disclosure: We have no position in CRCO either long or short. We have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.

Recommended for You